Blockchain has long been one of the rumoured technologies set to change the face of the insurance industry. While it has not received as much attention as other technologies like the Internet of Things (IoT) or cloud computing, the recent coronavirus use case could help stimulate interest in blockchain.
According to GlobalData’s Quarterly Tech Trends Survey, 48% of firms in the insurance industry are currently using blockchain. This is significantly lower than the current usage of AI (67%), IoT (70%), big data (78%), and cloud computing (83%) and is likely linked to a less positive perception of blockchain by those surveyed. 39% of insurance firms think blockchain is very important to their business and 48% think that it will have a positive impact on the industry. Again, these figures are lower than the corresponding ones for the other four technologies mentioned above.
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However, the recent use of blockchain in response to the coronavirus outbreak could help stimulate interest in the technology. Chinese insurance firms, like Blue Cross and Xiang Hu Bao, have employed blockchain to speed up claims and reduce the need for any face-to-face contact when a claim is submitted. Claimants can simply submit supporting documents as evidence and investigation firms then have immediate access to them. Because of the decentralised nature of the blockchain, there is less opportunity for fraud and all parties involved can see the claims process. Not only does this help customers by providing quicker payouts to help cover medical bills, insurance companies also benefit by reducing the number of potential claims for the virus through more limited human contact.
While this one application will probably not be enough to change the entire industry outlook on blockchain, it should encourage some of the 76% of firms that expect to use blockchain within three years to bring that timeline forward.
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By GlobalData
